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SAP MRP - Materials Requirements Planning PDF
SAP MRP - Materials Requirements Planning PDF
By-
Abhijeet Guha
Topics
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
WHY MRP ?
• Optimizing service level
• Minimizing costs and capital lockup.
MRP can be done in several ways:
• In case of MRP area level, the stocks from the storage locations belonging to this MRP
area as defined can be taken for planning to generate the requirements.
• MRP area planning helps in cases where one wants to restrict the planning to certain
storage locations.
Independent
MRP SD Processing
requirements
Dependent
requirement
Dependent
requirement Planned order
Conversion
Purchasing
functions
Order Processing
Purchase Orders
FINAL COSTING
INVOICE VERIFICATION
Warehouse
Process flowchart
MRP Process flow
In Demand Management, sales are planned in advance via a sales forecast. The
result is the independent requirement, i.e., the requirement for the finished product.
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
• Material master
• Bills of material
• Work centre ( in-house production)
• Routings ( in-house production)
• Demand management
• Sales and distribution (optional)
Topics
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
2. A separate run occurs for the MPS items, they are not included in the
MRP run.
• The safety stock takes care of both excess material consumption within
the replenishment lead time and any additional requirements that may
occur due to delivery delays
Re-order Point Planning
• Safety stock
• Replenishment lead time.
• Average consumption.
MPS
M0– MPS
MRP
PD– MRP
Time phased
R1– Time-phased planning
R2– Time phased w. auto.
reo. pt
Consumption based
V1– Manual reorder pt
V2– Auto. reorder pt
VV– Forecast based planning
Forecast based planning
• Here the forecast values form the basis of the planning run.
2. The materials planned using this is given an MRP date in the planning
file.
1. The Planning file contains the details of the materials that are to be
included for the MRP run.
3. MRP Run for a material occurs taking the information from the planning
file.
Planning run type depends on the processing key in the MRP run screen
1. In this run, the system considers those materials in the planning run
from their last MRP run in the total horizon.
Change in stock.
Creation of PR’s; PO’s; etc.
Any changes pertaining to receipts & issues.
Planning Run Type- NETPL
1. In this run, the system considers those materials in the planning run
which have undergone any change in the planning horizon as defined.
1. It plans all the materials for the MRP Run irrespective of the changes
they undergo.
2. This plan is not so widely used. It takes a long time to obtain the
final result.
MRP 1
MRP 2
MRP 3
MRP 4
Topics
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
• It can be run for a plant, group of plants, an MRP area, or several MRP
areas.
• For a single material or product group.
• Total planning
• Single-item, single level planning
• Multi-level, single item planning
• Interactive planning
• Multi-level, make-to-order production
• Individual project planning
• This is specially useful in case of MPS scenario where one can save the
procurement proposals from undergoing any change since the last
planning run.
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
• This can be defined in the lot sizing procedure in customizing for MRP
in Check Lot-sizing procedure OR directly can be defined using
T-code – OMI4.
• In this, the system groups the requirements in the defined period and
creates a lot.
• The system sets the availability date to the first requirement date within
the period, or the availability date can be set either at the beginning or
at the end of the period.
Optimum Lot Sizing Procedure
• In the static or period lot sizing, the cost are not taken into
consideration.
• Here the requirements are grouped together in a way which will reduce
the cost.
Topics
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
1 What is MRP
2 Master data for MRP
3 MRP Procedures
4 Planning Process
6 Traffic lights
1. During ATP, the system checks that all issues are covered by existing
receipts
2. Hence, if any quantities are left to cater new issues. This is ATP
Quantity.
ATP (Available to Promise)
At Sales and distribution When creating the Sales order, availability check
is carried to know whether the delivery can be done at the required date.
If the ATP quantity of this receipt does not cover the issue then the system
will search for and check the next nearest receipt (always in a
backwards direction) for a positive ATP quantity, which will then also be
allocated to the issue.
If receipts do not cover the issue, you must then decide whether you reduce
the requirements quantity as necessary or whether you move the
requirements date so that requirements coverage can be reached
again.
Availability check
If only one batch is entered, the check is carried out on two levels, first
against the batch and then against the plant stock.
If a batch and a storage location are entered, the check is carried out on
four levels, first against the batch storage loc ation, then against the
batch, the storage location and the plant stock.